From Theasset.com: According to Datin Maznah Mahbob, chief executive officer of the funds management division of AmInvestment Bank Group, investors in Islamic funds are generally risk-averse and the challenge for asset managers, therefore, is to enhance the performance of Islamic funds while catering to the investor propensity for risk avoidance – in addition to ensuring compliance with Shariah law.
To enhance their performance while maintaining low risk and volatility levels, conventional funds would use hedge fund methodologies and instruments such as shorting and leveraging which are irreconcilable with Shariah principles, Maznah explains..............................................Full Article: Source